Most debit and credit cards are associated with some sort of a bank account, or an institution that can extend credit. If an unscrupulous individual appropriates another person's card, he may obtain access to the account by fraudulently using the card, and can access the funds of the cardholder. Even worse, online activity by such unscrupulous individuals often results in a great deal of fraud and identity theft.
In addition, a user may wish to have a means of executing a one-time payment, or a series of similar payments, to a vendor of his choice, without resorting to paying by cash, by credit card, or by debit card. That is, the user might wish to have the convenience of paying for a service or commodity via a transaction similar to using a pre-paid card, but wishes to have this convenience at a commercial establishment which does not offer or accept pre-paid cards. This may occur, for example, when making a payment at a toll booth, or when purchasing a meal at an independent restaurant, or when making a charitable donation, or when patronizing a street vendor in a tourist venue, or when wishing to make a secure transaction while on travel.
More generally, the user may wish to have a method of transacting a purchase or a payment by using an electronic card that allows only certain types of transactions, where the allowable types of transactions are known only to the valid user of the card. What is needed for such situations is a more secure method of making purchases and conducting monetary transactions that mitigates the probability of monetary loss or third-party fraud.